China Ramps Up Assistance To Economy As Industrial Growth Falls To 17-Year-Low, Unemployment Rises

While China’s industrial output declined to a 17-year low in January and February of the current year (2019), unemployment rates in the country have also increased, reports Reuters.

However, the picture of the Chinese economy is not yet clear as the data released today (14 March) revealed that property investment was picking up, while the overall retail sales remained steady though sluggish.

With weakening demand in the domestic and export markets, China's industrial output grew only by 5.3 per cent in January-February. This figure was lower than estimates and was the weakest since early 2002.

Also, China's survey-based unemployment rate rose to 5.3 per cent in February, from 4.9 per cent in December (2018).

It was reported in January (2019) that China’s official economic growth came in at 6.6 per cent in 2018 — the slowest pace since 1990. China’s GDP grew by a tepid 6.4 per cent in the fourth quarter of 2018.

China’s economic slowdown, which was many years in the making, was accelerated by the trade war with the US in which both the nations raised tariffs on each others’ goods. However, negotiations are on between the two countries and deal finding the middle ground is expected soon.

Fudged Numbers

Also according to a new study, China ‘exaggerated’ its Gross Domestic Product (GDP) estimate between 2008 and 2016 by full two percentage points on an average, with miscalculations increasing every year. It stated that the actual size of China’s economy at the end of 2018 was markedly below the government’s official estimate.

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